§ 54. Sir George Harveyasked the Chancellor of the Exchequer, with regard to the amount of £45,799,000 contributed by the Exchequer towards relieving industry from the burden of local rates, as stated on the back of the Income Tax demand notes, whether the time has now arrived when most of the industries relieved by the Derating Acts are not in need of such relief; and will he consider cancelling this contribution in practically every instance apart from agriculture?
§ Sir J. SimonThe figure of £45,799,000 is described on the form to which my hon. Friend refers as "Exchequer Contributions to Local Revenues," and is by no means all accounted for by the grants paid in respect of derating. It is not possible to say what is the present value of de-rating, but the amount included in the 1586 original block grant in respect of derating in the standard year (1928–29) was about £25,500,000, and of this sum it is estimated that about £15,500,000 is the amount appropriate to industrial hereditamerits which my hon. Friend appears to have especially in mind. Derating was a measure of permanent reform in the system of local taxation accompanied by new financial arrangements between the Exchequer and local authorities. The Government are not prepared to ask Parliament to abandon that reform.
§ Sir G. HarveyIs it not true that some of the assistance given to industry is not now required?
§ Mr. T. WilliamsIs not the right hon. Gentleman aware that in rapidly growing districts the result of the Derating Act has been to impose burdens upon local authorities which many of them cannot bear?
§ Sir J. SimonThat is a separate question.